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The listed financial advice company will acquire 100 per cent of the issued shares in the accounting services organisation.
Financial services company Count Limited (Count) has revealed it will acquire accounting services organisation Diverger Limited (Diverger), obtaining 100 per cent of the issued shares valued at $45.3 million.
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The company - which offers wealth planning and mortgage broking services - announced the proposed acquisition on Friday (22 September) as part of a move to expand its provision of its financial and accounting services.
It will grow the company out to have a total combined revenue of $132 million, $29 billion of funds under management and approximately 550 advisers and 563 accountants.
All approvals being met, the merger is expected to be completed by early 2024.
Chief executive officer at Count Hugh Humphrey stated: “The transformational acquisition of Diverger continues the disciplined execution of Count’s strategic plan and accelerates the realisation of our growth ambitions.
“This transaction follows the successful acquisition of Affina and signals an exciting new phase for the company.
“Diverger has a strong cultural fit with our company and the combination is expected to unlock material benefits for all stakeholders as well as positioning us to lead further consolidation.”
Mr Humprey added that it was an “exciting transition” that would help place Count in a position as "an industry leader”.
Diverger managing director Nathan Jacobsen stated that the acquisition was a positive opportunity for the company.
Mr Jacobsen said: “The board of Diverger has been working for some time on creating more transformational outcomes for shareholders. We believe this transaction presents a compelling opportunity for Diverger shareholders to realise immediate value in the form of cash, with additional upside potential through shares in Count.
“In addition to highly complementary service offerings, Count will benefit from Diverger’s wealth of market expertise and extensive network. We look forward to the enhanced scale and breadth of service capabilities that an acquisition by Count supports.”
Count also stated that the transaction was expected to provide an "increase in scale and diversification of its revenue and earnings" as well as unlock future growth opportunities.
According to both organisations, the acquisition scheme received a “unanimous recommendation” from the Diverger board, stating that it was “in the best interests of Diverger shareholders”.
Diverger’s current major shareholder, wealth management platform HUB24 (which holds approximately 31.5 per cent of the company’s ordinary shares), also backed the transaction,adding that “in the absence of a superior proposal, [it] intends to vote all of the Diverger shares it holds or controls in favour of the scheme”.
[Related: A mutual merger 4 years in the making now confirmed]
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